CAIRNS Holdings was yesterday suspended from trading on the Zimbabwe Stock Exchange after the group voluntarily applied for provisional judicial management. The ZSE made the announcement yesterday but no reasons were given. However, Cairns has been facing financial constraints after the group failed to recapitalise since the adoption of multi-currencies three years ago.
In June this year, its management said the group required US$20 million for working capital, debt payment and plant refurbishment.
The group was saddled with debts amounting to US$12 million. Its operating capacity had dropped to 20 percent.
The Reserve Bank of Zimbabwe, the majority shareholder through Fintrust, has since invited potential investors to buy its 65 percent shareholding in the group. Cairns has lost 90 percent of its value year-on-year with market capitalisation now at US$240 000.
Meanwhile, PPC Zimbabwe's shares fell 14,5 percent yesterday, dragging the ZSE main index back in the red.
The dual-listed firm dropped US35c to US205c as the industrial index retreated 0,28 percent or 0,42 points to 149,25. Some selective heavyweight shares also traded in the red, but the losses were partially offset by slight gains in Delta Corporation.
PPC lost US$2,28 million in value to US$31,17 million from US$33,45 million on Tuesday.
Managing director Mr Zak Limbada said recently that the company was intending to build a US$200 million cement plant in Mashonaland Central Province.
The exploration of the raw material was already underway.
PPC is the country's largest cement company ahead of Lafarge Limited and Sino Cement.
Yesterday's fall took PPC's negative performance this year to date 2,38 percent.
The market was fairly active on thin volumes. Turnover improved to US$1,51 million from US$922 000. The bulk of the funds went into Delta that saw a total of 463 000 shares changing hands and Econet crossed over 160 000 shares at US480,09c.
Econet, the country's second largest company in value, dropped US4,91c to US480,09c.
CBZH lost US1c to US8c, bring its negative performance this year to date to 42,86 percent.
TA Holdings shed a cent to US10c. Year to date, the conglomerate is down 16,67 percent.
The mining index also shed eased 1,54 percent or 1,02 points to 65,05 on losses in Falgold.
Hwange was the lone gainer, after advancing US0,5c to US17,50c.
The company recently sealed a US$22 million supply credit deal with a Chinese mining equipment company Norinco.